Google AdSense Moves to First-Price Auction

Google AdSense Moves to First-Price Auction: Google AdSense from a second-price auction model to a first-price auction by the end of 2021, the company announced Thursday. There is no action for advertisers or publishers to take and these changes will occur automatically. Google AdSense previously used a sealed-bid second-price auction for buyers wanting to purchase ad space. It involved the winner — who offered the most — only paying the amount of the second-highest bid. 

First-price vs. second-price auctions:

In a second-price auction, the final price paid by the winner is determined by the second-highest bid. In a first-price auction, the final price is the same as the winning bid.

Which AdSense products are affected:

The transition to a first-price auction only affects AdSense for Content, AdSense for Video, and AdSense for Games. It does not affect AdSense for Search or AdSense for Shopping.

Benefits to publishers and advertisers:

By streamlining the auction model across Google AdSense, Ad Manager, and AdMob, we’re aligning our process with other ad selling platforms in the display advertising ecosystem. We believe that this will help grow advertiser spending confidence in digital advertising, and an increase in spending confidence over time will benefit publishers.

Preparing for the change:

Expect the transition to a first-price auction to be completed later this year. You do not need to do anything, these changes will update automatically.